Monday, March 16, 2015

Several Indian life insurance firms are courting private equity investors to boost their capital ahead of potential IPOs, which became more feasible after a new law allowing higher foreign ownership in a sector that last year was worth $50 billion. The law, approved last week, lets insurers including Britain's Prudential PLC, Standard Life and Canada's Sun Life Financial raise holdings in Indian joint ventures to as much as 49 percent from 26 percent, a change that makes a public offering less likely to significantly dilute the foreign partners' stake.Bankers and executives, however, said the more nimble private equity firms were better placed to help raise capital in the short-term, which the companies need to get a valuation benchmark ahead of possible listings.The funds would also help the companies boost penetration of life insurance in a country of some 1.3 billion people beyond just 3.7 percent. By comparison, life insurance penetration in China and Hong Kong combined is around 12 percent."If our shareholders decide that IPO is to happen in the next 12 to 15 months, then only a private equity transaction or a private equity-like transaction we might do," Amitabh Chaudhry, CEO of HDFC Life, told Reuters.

Prudential plc (Prudential) is an international financial services group, with operations in Asia, the United States and the United Kingdom. Shares of PUK fell by 0.74% or $-0.37/share to $49.71. In the past year, the shares have traded as low as $41.86 and as high as $50.88. On average, 241769 shares of PUK exchange hands on a given day and today's volume is recorded at 764175.

Sun Life Financial Inc. (SLF Inc.) is an international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Shares of SLF fell by 1.02% or $-0.32/share to $31.15. In the past year, the shares have traded as low as $29.99 and as high as $38.85. On average, 529112 shares of SLF exchange hands on a given day and today's volume is recorded at 953490.

Sun Life Financial Inc. (SLF Inc.) is an international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Shares of SLF fell by 0.28% or $-0.11/share to $39.81. In the past year, the shares have traded as low as $35.46 and as high as $43.44. On average, 1481390 shares of SLF.TO exchange hands on a given day and today's volume is recorded at 1131181.

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